GRAPHIC BY JENNIFER MINOTTI
Alea iacta est! which is Latin for “The die is cast,” meaning there is no turning back now. The saying, attributed to Julius Caesar when he led his army across the Rubicon River toward Rome, fits the intent of the Florida Department of Transportation to hand off ownership of SunRail to the local governments served by the system. Moreover, the local partners have ratified the coming change.
“We did receive unanimous votes from all local partners,” SunRail Technical Advisory Committee Chair Tawny Olore said.
That means the five local jurisdictions that have SunRail service — Volusia, Seminole, Orange and Osceola counties and the City of Orlando — will become responsible for paying the cost of owning and operating the 61-mile-long transit system that extends from Poinciana to — very soon now — DeLand.
The FDOT has operated SunRail for a decade, but now the countdown for the change of owners is set for Jan. 1, 2025 — less than nine months away.
“We still have a lot of work to do to get through the transition checklist,” FDOT District Secretary John Tyler told the Central Florida Commuter Rail Commission in Orlando March 28.
That body represents the five future owners of SunRail, meaning the counties of Volusia, Seminole, Orange and Osceola counties and the City of Orlando. Those local governments will soon begin paying the costs of running the system, as it now exists, when the new year begins.
Previous discussion about the future of SunRail envisions the CFCRC contracting with LYNX, the Orlando-area tri-county bus system, to operate the rail line.
Tyler said the move to transfer the ownership of SunRail is moving ahead.
“We’ve got to complete the replacement of the ticket-vending system. That’s something we have been working on for several years,” Tyler told The Beacon. “If you go out to the stations here, you can actually see the new system, the new machines. Half the machines have been replaced with new machines. They’re not operational yet, but we’re going through testing those machines with validators and our new mobile-ticketing app system. So we’ve got to do that. We’re looking to do that before we get to summertime, as well. And then we’re going to open the station and service to DeLand before we get to this summertime, as well.”
“So those are two really big steps that are coming next and are fundamental to achieving the transition to the local governments,” he continued. “Once we’re done with those two very big milestones for SunRail, we will continue to work on the details of the transition. You know, bringing on board an attorney, a general counsel, for the CFCRC. The commission needs an attorney. They need bank accounts. They need staff. So all of those things are spelled out in the transition agreement, and you’ll see that there’s dates when those should be, when they should occur. And then there are responsibilities, whether it’s DOT or the CFCRC, so we’re going to be working hand-in-hand all the way through the rest of 2024 to make this transition effective on Jan. 1.”
DELAND’S STATION — This artist’s rendering depicts the DeLand SunRail Station to be built adjacent to the existing historic DeLand Amtrak Station at 2491 Old New York Ave., and will be situated on the existing Central Florida Rail Corridor.
The agreements in a nutshell
As the clock ticks toward the transfer of ownership, the terms of the deal are becoming clearer:
— The transition will be in two phases: one is financial, and the other is operational.
— Heretofore, the FDOT has paid virtually all of the expenses associated with SunRail. Although the state agency is turning over much of the costs of running the rail transit to the locals, the FDOT will continue to operate SunRail for perhaps another three years, to make certain the system is in good shape and that the local partners can take over and run the system.
— The local funding partners will assume the costs of keeping SunRail going. Expenses for diesel fuel, personnel aboard the trains, at the depots, and behind desks, along with insurance and providing bus service to and from SunRail stations, will become the responsibility of the locals.
Not least, the local funding partners must cover SunRail’s deficits. The annual shortfalls range in the $40 million-$48 million bracket.
With a 2023-24 budget of almost $81.6 million, SunRail’s revenues are projected to be
The income amounts to about $34.2 million. The SunRail fares account for about $2.2 million, or a little less than 3 percent of the income. Other sources of revenue include the track-usage fees paid by Amtrak and CSX, advertising and charter trips. The deficit would be much greater, if SunRail did not receive grants of $27 million from the Federal Transit Administration.
— The local partners have an agency, the CFCRC, that will serve as the governing entity for SunRail. The five-member commission consists of elected officials, one from each jurisdiction, who will set policy, enter into contracts, apply for grants and act as necessary to keep SunRail going after the FDOT ends its role as operator of the system.
— Those local funding partners will own the future of SunRail.
“Those partners will be able to expand that service,” Olore said.
One of the key provisions of the transition, as negotiated and now approved by the local funding partners and the FDOT, is the right of members to say no to future expansions of service to which they object. At the insistence of Volusia County officials, the revised agreements contain safeguards against charging local partners for expansions or extensions of SunRail’s service that one or more members oppose because of costs.
As examples, suppose one or more CFCRC members want to run SunRail trains for longer hours or wish to create another phase of SunRail, such as extending a rail line between Downtown Orlando and Orlando International Airport — an idea that has been discussed in recent years. If Volusia County or Seminole County does not wish to share in the expense, Volusia will not be compelled to do so.
Yet, that may require some forethought before making a firm decision, according to Tyler.
“To expand SunRail, whether it’s nights and weekends, or to expand it to other destinations, it’s going to be an increased cost,” he said. “The way that the agreements are structured, only those that are willing to participate in those increased costs will. But if you don’t participate in the increased cost, you’re not likely to going to participate in the increased mobility benefits that come along with it, nights and weekends. The train may not go into Volusia County, unless Volusia County chooses to pay their share of nights and weekends.”
“If they expand to the airport, and Volusia County doesn’t want to chip in for that, those riders from Volusia County might need to change trains, you know, and wait for another train before they can continue on that journey, you know, change somewhere in Orange County or the city of Orlando. But that remains to be seen,” Tyler added. “The bottom line is that Volusia County is concerned about future costs, and the way the agreement is structured, the only way they participate in the future costs is if they want to. They can’t be forced into it.”
— While the FDOT is relinquishing its role as the bill payer for the rail-transit system’s operations, the FDOT will provide a payment of $5 million for Positive Train Control. PTC is a federally mandated rail-safety system that was not in existence when the first interlocal agreements for commuter rail were adopted in 2007. The PTC is a $10 million line item in SunRail’s annual budget.
The cost of PTC may change from year to year, depending on the number of trains. As well as SunRail, Amtrak passenger trains and CSX freight trains travel on the tracks of the 61-mile corridor that the FDOT purchased from CSX in 2005.
— The FDOT will also pay $10 million to make certain the trains are in good repair. The FDOT will also retain the maintenance of the rail bridges along the SunRail line.
Coming soon: new owners, new management
The change has been a long time in coming. SunRail first began weekday runs, first between DeBary and Sand Lake Road in Orlando, in May 2014. Later, after additional tracks were laid and new stations were built, the commuter-rail service became a transit option for those living between Poinciana and DeBary. The long-promised extension of service to and from DeLand languished because of a lack of cash to pay to make DeLand the north terminus of the system. The construction of that last 12-mile segment of the original 61-mile-long rail venture is now underway and set to finish by midsummer.
Since its inception, SunRail has amassed costs of $1.5 billion — well above the $79 million price tag that former U.S. Rep. John Mica, R-Winter Park, estimated when he proposed the commuter-rail line in 2000.
